LONDON (dpa-AFX) - Electrocomponents plc (ECM.L) said that it expects half-year adjusted profit before tax to be around 100 million pounds, compared to 79.0 million pounds reported in the first-half of 2018. It remains on track to deliver 4 million pounds of cost savings in the current financial year as a result of Performance Improvement Plan phase II.
In a trading update for its first half ended 30 September 2018 ahead of publishing half-year results on 20 November 2018, Electrocomponents said that its good start to the year continued into the second-quarter, as a positive market backdrop and strong execution drove market share gains and improved profitability across the business.
Like-for-like revenue growth remained strong at 10% in the second quarter leading to the first-half like-for-like revenue growth of 10%.
Digital revenue grew in line with the Group overall, with like-for-like revenue growth of 10% in the first-half.
The company said it remains on track to deliver stable gross margins in its base business for the full year.
Separately, Electrocomponents issued a restatement of its financial results for the year ended 31 March 2018 and for the half year ended 30 September 2017. It announced at final results in May that it would be moving to a new simpler structure with three regions: EMEA, Asia Pacific and the Americas.
The company noted that it has also taken the opportunity to move a greater proportion of cost that had previously been charged in central costs out to the regions. These include costs such as regional recruitment costs, pensions and share-based payment costs.
The company reported restated group revenue of 823.8 million pounds in the six months ended 30 September 2017, while it posted restated group revenue of 1.705 billion pounds in year ended 31 March 2018.
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